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Suppose that 15% of the customers at another grocery store reliably reuse their bags. In order to increase this behavior, the grocery store began giving a 5-cent bonus for reusing bags. This increased bag reuse to 18%. Store management decided that this was not a meaningful increase and discontinued the policy, after which bag reuse dipped to under 10%. What probably was responsible for this decrease in pag reuse below the normal rate of 15%? o the discontinuation of the bonus policy O conscious motivations becoming unconscious O extrinsic motivation decreasing intrinsic motivation O intrinsic motivation decreasing extrinsic motivation

Suppose that 15% of the customers at another grocery store reliably reuse their bags. In order to increase this behavior, the grocery store began giving a 5-cent bonus for reusing bags. This increased bag reuse to 18%. Store management decided that this was not a meaningful increase and discontinued the policy, after which bag reuse dipped to under 10%. What probably was responsible for this decrease in pag reuse below the normal rate of 15%? o the discontinuation of the bonus policy O conscious motivations becoming unconscious O extrinsic motivation decreasing intrinsic motivation O intrinsic motivation decreasing extrinsic motivation

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Homonoff, T. A. (2013). Can small incentives have large effects? The impact of taxes versus bonuses on disposable bag use. Working Papers. Princeton University. Industrial Relations Section; 575. Motivation can be unconscious or conscious, extrinsic (motivated by consequences of the behavior) or intrinsic (motivated by the behavior itself), and approach or avoidance orientated. Research has shown that avoidance motivation is stronger than approach motivation. People care more about avoiding losses than they do about achieving equal-size gains. This concept is termed loss aversion. Homonoff (2013) studied grocery stores in Washington, DC, that attempted to get their customers to reuse their shopping bags by giving them a 5-cent bonus when they did so, or imposing a 5-cent tax wher they did not, both the bonus and the tax, or neither of these things. The results are shown in Figure 8.1. 47.8% 44.2% Proportion of Customers Using a Reusable Bag 15.4% 13.1% No Incentive Bonus Only Тах Only Bonus and Tax Suppose that 15% of the customers at another grocery store reliably reuse their bags. In order to increase this behavior, the grocery store began giving a 5-cent bonus for reusing bags. This increased bag reuse to 18%. Store management decided that this was not a meaningful increase and discontinued the policy, after which bag reuse dipped to under 10%. What probably was responsible for this decrease in bag reuse below the normal rate of 15%? O the discontinuation of the bonus policy O conscious motivations becoming unconscious O extrinsic motivation decreasing intrinsic motivation O intrinsic motivation decreasing extrinsic motivation
Transcribed Image Text:Homonoff, T. A. (2013). Can small incentives have large effects? The impact of taxes versus bonuses on disposable bag use. Working Papers. Princeton University. Industrial Relations Section; 575. Motivation can be unconscious or conscious, extrinsic (motivated by consequences of the behavior) or intrinsic (motivated by the behavior itself), and approach or avoidance orientated. Research has shown that avoidance motivation is stronger than approach motivation. People care more about avoiding losses than they do about achieving equal-size gains. This concept is termed loss aversion. Homonoff (2013) studied grocery stores in Washington, DC, that attempted to get their customers to reuse their shopping bags by giving them a 5-cent bonus when they did so, or imposing a 5-cent tax wher they did not, both the bonus and the tax, or neither of these things. The results are shown in Figure 8.1. 47.8% 44.2% Proportion of Customers Using a Reusable Bag 15.4% 13.1% No Incentive Bonus Only Тах Only Bonus and Tax Suppose that 15% of the customers at another grocery store reliably reuse their bags. In order to increase this behavior, the grocery store began giving a 5-cent bonus for reusing bags. This increased bag reuse to 18%. Store management decided that this was not a meaningful increase and discontinued the policy, after which bag reuse dipped to under 10%. What probably was responsible for this decrease in bag reuse below the normal rate of 15%? O the discontinuation of the bonus policy O conscious motivations becoming unconscious O extrinsic motivation decreasing intrinsic motivation O intrinsic motivation decreasing extrinsic motivation
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